Case lancer photo gallery essay
My spouse and i. Market Situation Analysis:
Lancer galleries happen to be in a very distinctive business. Although their quantity of competitors has grown over the past couple of years, the number of competitors is relatively handful of. This is an edge. Disadvantages is much more. For one, replicas and fakes are becoming a problem on the market. This postures a menace to Lancer, as many people are only getting artifacts pertaining to gifts and decorative products, not patient about the historic value, and would rather pay a cheaper price intended for practical functions.
Second, obtaining artifacts by over seas has verified harder over the past several years as a result of political scenarios and other factors that limit supply. This makes true artifacts harder to get, for that reason more expensive. Last but not least, because of the recession and economic issues, shopping for African and South American artifacts is definitely not as prevalent.
II. Crucial Problem
Lancer Galleries need to decide if it will be a brilliant decision, but ethically and financially, to consider the deal that was wanted to them with a mass items department store.
The deal presents the chance to add $4 million in additional product sales annually, nevertheless they would have to multiple the amount of reproductions they sell. They are really torn by the opportunity to make more money, but the probability of ultimately cheapen the value of all their business by selling fakes.
III. Analysis of Options/Alternative Approaches
Lancer Art galleries has two options. They will either take those deal proposed by the mall, or they will decline and continue to execute business because they always have. In the event they agree to the pitch they have the opportunity to increase product sales by 4 million each year (depending in consumer acceptance). The company might buy merchandise at 10% below the industry’s existing rates and its initial purchase probably would not be any kind of less than $750, 000. Yet , in order to attempt, Lancer Galleries and museums would have to three-way the amount of copies they sell in order to have enough merchandise to sell. Simply by increasing the replica product sales, Lancer will be redefining the business enterprise, asthey have always prided themselves on finding the most pristine and legitimate artifacts available. Lancer faces the problem of more income, versus compromising business principles.
I recommend that Lancer would not accept the contract that was proposed. Right now their very own one benefit is that they terribly lack many competition. This is because that they only offer legitimate artifacts and people trust that when that they buy from these people, they are obtaining a solid product. While straight up it may seem that they can would be making more money, I believe that total they would be cheapening their business by tripling how much replicas distributed.